London Markets: FTSE 100 drops on China gloom, Brexit-vote jitters

London markets fell on Monday, a day ahead of the crucial U.K. parliamentary vote over Prime Minister Theresa May’s divisive agreement for Britain’s exit from the European Union.

Weaker-than-expected Chinese trade data added to investor worries that China’s economy is slowing, dragging on perceived risker asset such as stocks and oil.

How are markets trading?

The U.K.’s FTSE 100 UKX, -0.99% fell 1% to 6,851.34, after finishing up 1.2% on Friday.

The British pound was indecisive on Monday, as it struggled to make gains. The pound GBPUSD, +0.1636% was trading at $1.2839 from $1.2830 seen late Friday in New York.

What is driving the markets?

U.K. Parliament will vote on Prime Minister Theresa May’s divisive agreement for Brexit on Tuesday, and that has helped put U.K. markets on edge despite last week’s gains.

May will address MPs on Monday and warn them that voting against her deal could ultimately stop the U.K. from leaving the European Union. It is widely expected that the Prime Minister’s deal will be rejected reject tomorrow, as politicians on both sides of the Brexit debate continue to oppose to its central tenets.

Weaker-than-expected Chinese trade data hit investor appetite for perceived riskier assets, such as stocks, and sparked fresh worries over a global economic slowdown on Monday. China’s trade surplus with the U.S. also rose to $323.32 billion in 2018, the widest ever as the two nations are in talks to resolve trade disputes.